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NYTimes: MGI Research Quote on the Breakup of the ATT T-Mobile Merger

Posted by MGI Research
MGI Research
MGI Research Analyst Team
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on Wednesday, 21 December 2011 in Mobile Computing

New York Times Technology section today quoted MGI Research Senior Analyst Tero Kuittinen on the breakup of the merger between ATT and T-Mobile. Click here for the link to the story.

Back in March of 2011, we first commented on the announcement of the deal pointing out the more serious than expected regulatory hurdles this transaction was facing. Our expectation was that ATT was going to offer major concessions to make this deal happen, but that did not happen. See the original comment below or click here to view the comment in our Typepad Blog.

Tech Industry Trends, March 21 2011:

"ATT deal to buy T-Mobile likely to get higher than expected level of anti-trust scrutiny. Aside from pricing gaps for many key services between T-Mobile and ATT (e.g. Blackberry Enterprise service) and opposition by Verizon, the deal may affect the so called market share concentration ratios - a metric used by US DOJ. Once these ratios reach a certain minimum level, e.g. 70, red flags go off in the anti-trust review. Deal still likely to close in our view but conditions and dates may be stretched and require concessions from ATT."

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